Malaysia Raises E-Invoicing Exemption Threshold to RM3 Million

Malaysia has increased the annual revenue threshold for mandatory e-invoicing from RM1 million to RM3 million, exempting more than 1.1 million smaller businesses from the requirement.

The change took effect on 1 September 2026, following an announcement by the Malaysian Inland Revenue Board, HASiL, on 30 August.

Under the revised rules, micro, small and medium-sized enterprises with annual revenue or sales below RM3 million (approximately US$742,000) will no longer be required to implement e-invoicing. The government said the change is intended to reduce the cost and administrative burden of compliance for smaller taxpayers.

Malaysia began rolling out its e-invoicing mandate on 1 August 2024, initially targeting businesses with annual turnover or revenue above RM100 million. The requirements have subsequently been extended to additional groups of taxpayers.

The higher exemption threshold will also affect companies purchasing goods and services from smaller Malaysian suppliers. Businesses below the RM3 million threshold may be permitted to continue issuing invoices in a non-electronic format, meaning buyers may need to accommodate a mixture of electronic and conventional invoices within their accounts payable processes.

Source: KPMG